Broker tips: Retailers, CPP, Diploma

Peel Hunt has evaluated the impact of recent weather disruptions at a crucial time of year for retailers, as the first companies begin to deliver snow-driven profit warnings.The broker highlights high street womenswear retailer Alexon's trading update as the first of many weak outlook statements. It reported a 19.9% decline in life-for-life (LFL) sales over the three weeks to 18 December, bringing the year-to-date LFL decrease to 4.7%.Internet fashion retailer ASOS (Sell, TP 1,000p) will likely be hit by its inability to offer next-day delivery, which has led the company to bring forward the Christmas cut-off, along with other online retailers.The broker says that it expects little or no material disruption for the internet and catalogue home shopping company N. Brown (Buy, TP 300p).Stevenson predicts car parts and bikes seller Halfords (Hold, TP 480p) will benefit from the cold weather, as it will drive sales of high-margin winter products.While trendy fashion retailer SuperGroup will likely see some disruption, the strong online and sale and performance to date is expected to "leave the business on track for trading-driven upgrades in January," says Stevenson."Weak outlook statements in January, uncertainty over 2011 and inflation fears will have a negative impact on retail share prices in Q1 next year," he thinks, though this will give investors the opportunitiy to buy into structural growth retailers such as homewares retailer Dunelm (Buy, TP 600p).Credit card and ID theft specialist CPP has seen a strong run and so Peel Hunt cuts its recommendation from 'buy' to 'hold', awaiting further positive newsflow in the new year.The stock has risen 34% since August and the broker notes the shares are now fairly priced, but rewards good progress with a target price increase to 310p from 280p. Other estimates are unchanged."We like CPP for its strong growth, international exposure and excellent cash generation profile," it says.Panmure Gordon has kept its positive stance on Diploma after its latest acquisition looks to enhance the group's presence in Canadian healthcare and boost earnings. The specialised technical products distributor announced Tuesday that it is buying Carsen Medical Inc, the distributor of gastrointestinal endoscopy-related medical devices for hospitals and private clinics across Canada."The group has shown its ability in making value enhancing bolt-on acquisitions," says the broker, repeating its 325p target price and 'buy' rating. Diploma Dunelm Halfords ASOS